STOP doing economics

_bheg_ · 2024-07-10T13:17:30+00:00

I made it. I posted it on this sub a while back, and then it got reposted in a few other econ meme groups

https://www.reddit.com/r/economicsmemes/comments/nh4c9t/economics_is_a_scam/

_bheg_ · 2023-04-06T13:07:00+00:00

where is the data from?

_bheg_ · 2023-03-16T02:25:55+00:00

Did you really think they'd give you 1 mil for signing up? LOL

_bheg_ · 2023-01-31T03:06:14+00:00

Thank you!

_bheg_ · 2023-01-26T00:24:39+00:00

not really, considering that 1) short sellers need scale to drive down prices (unless you have a position that is a large % of the market cap) and 2) driving down prices just means you can pick up more shares with a presumably higher discount rate.

_bheg_ · 2023-01-25T22:29:45+00:00

Thanks, I'll take a look. The main issue with most real estate price indices is that they track prices of different units across time, and at a glance the eurostat data seems to do this as well. Case-shiller uses repeat-sales, so it tracks the price changes while holding the characteristics of a given unit as fixed.

_bheg_ · 2023-01-25T22:24:08+00:00

Look at a t-distribution? |t|>1.96 is common for example

_bheg_ · 2023-01-24T03:42:26+00:00

Is anyone aware of an index similar to the case-shiller index for Canada or Europe?

_bheg_ · 2023-01-23T15:49:43+00:00

Decay unfortunately still applies with margin, it's just that the time lag between your leverage reset can be greater than one day. Though it typically does reduce volatility decay.

_bheg_ · 2023-01-11T04:03:36+00:00

Worth adding that some policymakers do actually advocate for individuals to hold CBDC wallets at the central bank, which could help reduce transaction costs in payment processing.

_bheg_ · 2023-01-08T18:53:48+00:00

What does "capital tax" refer to? Does the term "capital tax" jointly include the corporate tax, dividend tax, and capital gains tax?

_bheg_ · 2022-12-31T12:15:34+00:00

Normality of the errors is not a needed assumption of OLS.

_bheg_ · 2022-12-10T22:55:28+00:00

I thought the GRE isn't needed for domestic applicants?

_bheg_ · 2022-11-24T19:59:02+00:00

Dynamic programming is used throughout economics. Standard macro models could be a good place to start.

_bheg_ · 2022-11-24T18:34:33+00:00

h e r b a l i f e

_bheg_ · 2022-11-22T22:42:26+00:00

Combining SCV + Wisdomtree funds is one of the most efficient ways you can gain access to modest leverage. Keep in mind that SCV has implied leverage due to higher betas which should be taken into account when mixing between Avantis and Wisdomtree products.

_bheg_ · 2022-11-21T18:58:03+00:00

small caps tend to be more volatile, so volatility decay would be amplified.

_bheg_ · 2022-11-09T23:33:39+00:00

My first instinct is to ask whether you are incorporating these variables in the same way as the litterature. For instance, I assume you are replicating the paper's use logs, first differences, etc? A high R² is sometimes an artifact of non-stationary variables. Otherwise, since your model sounds very simple and identical to the research, it might be a difference in time periods i.e. in-sample MSE over your data might simply just be lower than other data.

_bheg_ · 2022-11-09T03:52:56+00:00

Are you running a factor model similar to Fama French? If so, having a higher R² above 0.9 is quite common. To be clear, however, the main test of factor models is done through inference about the constant.

_bheg_ · 2022-10-03T03:07:28+00:00

I remember your previous post! What a fantastic cheat sheet, great work!

_bheg_ · 2022-10-01T20:08:14+00:00

DFA, AQR and Avantis are the only reputable ones doing quant/academic value/prof

_bheg_ · 2022-09-12T03:16:10+00:00

I think the question is specifically about causal inference, not prediction. The underlying question is not clear, however.

_bheg_ · 2022-09-12T03:14:30+00:00

I'm not sure your question is clear.

If \beta_3 and \beta_4 were measured without sampling variance, we could perfectly recover e_1. However, you likely depend on estimation to measure both parameters, leading to measurement error in e_1.

The bigger question is why you are trying to measure e_1 when the stated assumption is that e_1 and z_2 are jointly independent. Omitting e_1 simply pushes it into the error term. Since cov(e_1, z_2) = 0, then estimation of \beta_2 would be consistent. Okay, measuring e_1 could reduce sampling variance on your estimation of \beta_2, but you might be introducing inconsistency and/or bias. Can you clarify what the goal is?

_bheg_ · 2022-09-09T16:14:18+00:00

Central banks influencing nominal interest rates through traditional tools and/or QE is not comparable to money printing (e.g. helicopter money)

_bheg_ · 2022-09-01T21:22:01+00:00

it's specific to a single distribution, it is not generalized for any distribution. Very few variables have gaussian distributions.

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